|
on Financial Development and Growth |
| By: | Mewael Tesfaselassie |
| Abstract: | The paper examines the effect of trend productivity growth on the determinacy and learnability of equilibria under alternative monetary policy rules. It shows that under a policy rule that responds to current period inflation and the output gap a higher trend growth rate relaxes the conditions for determinacy and learnability. Results are mixed for other policy rules. Under the expectations-based rule, trend growth reduces the scope for determinacy but it relaxes the conditions for learnability. Under the lagged-data-based rule rule trend growth reduces the scope for determinacy and learnability |
| Keywords: | trend growth, learning, monetary policy, determinacy, expectational stability |
| JEL: | E4 E5 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1744&r=fdg |
| By: | Fabio Manca; Giuseppe Piroli |
| Abstract: | The aim of the paper is to test the Benhabib and Spiegel (2005) productivity (TFP) catch-up framework on European regions. Differences in the stock of human capital across regions are hypothesized to be the cause of differences in the speed by which follower regions converge and catch-up with the technology frontier. We find robust empirical evidence for this hypothesis. Also, we find evidence of complementarities between R&D expenditures and human capital accumulation for which R&D impacts TFP growth as long as a critical mass for the stock of human capital is reached. The results are robust to sectoral disaggregations and to the choice of a country or sectoral specific leader in the TFP gap computation and to control for spatial dependence across European regions. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p816&r=fdg |
| By: | Serkan Degirmenci |
| Abstract: | Many cross-country studies acknowledge the indispensable role of institutions in promoting economic growth and in sustaining economic development. So, their emphases have shifted to determine the most influential institution(s) in order to be specific. While these papers are widespread in the recent literature, the role of institutions within-country level has not been yet discussed in detail. Although the formal institutional structures of many nation-state countries apply to their all regions, results may differ depending upon various conditions. Considering these differentiated outcomes, this study aims to discuss the roles and functions of institutions in regional economic growth and development. To that end, first objective of this paper is to provide an introductory background by surveying and systematically documenting the evidences on the impact of institutions on regional growth and development outcomes from both the theoretical and empirical studies within a voluminous literature. Second objective is to elaborate this survey by classifying these studies with respect to their different conceptions about “institutions†and to their methodological approaches adopted. By doing that, this paper try to propose an analytical framework that identifies the channels of influence between institutions and economic performance outcomes. As the main concern of that study, third objective is to discuss whether institutions really matter for regional economic growth and development and, if so, how can institutions be included in the regional growth and development policies. Turkey is a convenient example for this discussion. Although its fundamental written institutions have a countrywide validity, their density and quality varies among regions. So, lastly, it is planned to be done an empirical exercise to reveal the linkages between prominent characteristics of these regional institutions and economic performances of regions for the case of Turkey. To sum up, the novelty of this paper is to provide an extensive but a systematic survey of many studies in related literature and to contribute in part to the empirics of the relationship between institutions and regional economic growth and development. Finally, it is expected to obtain a sound understanding about the institutional approach both in economic growth and economic development spheres within the regional context. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1180&r=fdg |
| By: | Mariasole Bannò; Celeste Amorim Varum; Valentina Morandi |
| Abstract: | This paper investigates empirically determinants of regional growth. The scant literature that exists indicates that a region’s economic growth depends to a large extent on several features of the regions themselves, which evolve slowly over time. Our results contribute to this set of literature, accounting also for policy variables, which have been by far neglected. Indeed, due to numerous market failures, measures to promote innovation and internationalization have been prominent in government policies in the last decade. This follows because, there is a consensus among academics, policy makers and practitioners that innovation and internationalization has become increasingly important for the growth of regions and countries. The effect of such ad hoc policy measures by home governments to promote innovation and internationalization has scarcely been studied, and existing studies addressing this issue have mainly a national focus. Despite the clear theoretical justification for the public support, policy makers ask for robust empirical evidence on these matters. This paper contributes to this end. The novelty of the study is in the emphasis on the impact of public policy tools (for innovation and internationalization), and on the coordination between them, upon regional growth. The study is conducted for the 20 Italian regions over the period 1998 to 2008. It tests not only the importance of regional characteristics but also the effects of public policy measures upon the regional economic growth. We focus in specific in the role of innovation and internationalization policy related measures. The results reveal the importance of regional characteristics and also of policy measures. The empirical findings are in line with the theoretical hypotheses: public incentives are key for promoting growth, and they have to be seen in the broader context of the determinants of regional growth. The paper also derives conclusions regarding the interrelationship between policies for innovation and for internationalization. Moreover, the allocation of incentives does not seem to help counterbalance the regional asymmetry, and the global processes and challenges are likely to strengthen the gap between regions. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p457&r=fdg |
| By: | Dan Rickman; Belal Fallah; Mark Partridge |
| Abstract: | This paper examines the spatial pattern of U.S. county employment growth in high-tech industries. The spatial growth dimensions examined include industry cluster effects, urbanization effects, proximity to a college, and proximity in the urban hierarchy. Growth is examined for overall high-tech employment and for employment in various high-tech sectors. Econometric analyses are conducted for a sample of all counties and for metropolitan and non-metropolitan counties separately. Among our primary findings, we do not find evidence of positive localization or cluster growth effects, generally finding negative growth effects. We instead find some evidence of positive urbanization effects and growth penalties for greater distances from larger urban areas. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p518&r=fdg |
| By: | Simon Sosvilla-Rivero |
| Abstract: | The Spanish regions are facing a severe recession caused by the international financial crisis that has overlapped with the correction that had been recorded in the property market, which has led to a sharp drop in economic activity and a rapid destruction process employment. In these circumstances it is a priority to begin a new growth path based on a more productive and sustainable pattern, which enhances competitive sectors and contribute to the creation and consolidation of employment. This paper has attempted to shed light on what branches of production can be the basis for a new production model of the Spanish economy to overcome the weaknesses in the present, making special emphasis in services To this end, the behavior of productivity during expansions will be analyzed for twenty production branches by applying the methodology proposed by Leamer (2007), based on the decomposition of contributions to the growth of the productivity of each of these branches in 'normal' and 'outstanding'. The results will identify production branches that have contributed to the weakening of productivity during recessions as well as those that have created an important stimulus to productivity during expansions. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p57&r=fdg |
| By: | Laura Diaconu |
| Abstract: | At the beginning of the XXIst century, the importance of innovation is brought in light mainly due to the huge differences that exist between the living standard of the richest and of the poorest nations, differences that could be partly explained through the fact that the most advanced countries pay a greater attention to the intensive side of economic activity. The purpose of this paper is to determine the way in which innovation actually influences the economic growth and the prosperity of a country. Being known that between the stock of human and social capital, on one side, and the innovation, on the other side, there is a strong positive correlation, we will try to identify the possibilities that developing economies have to foster the innovation. The relationship between human capital and innovation will be analyzed in order to see how it could be optimized so that to obtain the best results on both micro and macroeconomic level. The example of China, whose fast development astonished the world, will serve as a model in reaching out our purposes. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p391&r=fdg |
| By: | Michelle Lowe |
| Abstract: | The context for this paper is the 2010 Cameron Government growth review which identified retail as one of six sectors capable of delivering significant economic growth and stimulating employment in the post-economic crisis period. Additionally the paper relates to recent arguments in UK public policy regarding innovation in services. In the UK retail sector accounts for 8% of GDP and employs 1 in 10 of the workforce. Annual turnover was 316 billion in 2009 of which GVA was 68 billion. This placed the UK’s retail sector as the sixth largest in the world in terms of sales. The paper focuses on three case studies spread across the size spectrum. a.Tesco – the UK’s largest retailer, where the focus will be on the innovative aspects of the firm’s recent high risk US market entry, specifically the novel ‘capabilities’ which Fresh & Easy Tesco’s US subsidiary has developed and the potential for future growth both in the US and other international markets via the scaling up of these innovations. b.Jack Wills – a high growth medium sized clothing retailer whose profitability growth currently exceeds 70% per annum. Notable for its word of mouth/viral marketing techniques, the firm has recently expanded its reach to include a sister brand Aubin & Wills targeting a different demographic sector. In addition the firm has recently expanded into east coast USA specifically to Boston, Martha’s Vineyard and Nantucket and has plans for further expansion to Japan within the next eighteen months. c.The Hambledon a mini ‘lifestyle’ department store recently ranked within the top seven inspiring independent clothing retailers in the UK and regularly highlighted as ‘cutting edge’ within the media. Notable for its ‘choice edited’ collection the store has demonstrated a remarkable ability to capture growth during the recent crisis period in UK consumer confidence. The studies reveal some of the barriers and opportunities faced by retailers in delivering the growth the UK Government seeks. Additionally they illustrate the key role that retailers play in the development and sustainability of innovative urban spaces and the creative economy. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1194&r=fdg |
| By: | Ercan Dulgeroglu; Sibel Bali Eryigit; Kadir Y. Eryigit; Filiz Gaygusuz |
| Abstract: | The Role of Physical, Human and Social Capital in Regional Financial Development Differences: An Analysis of Turkish Provinces Ercan Dulgeroglu , Sibel Bali Eryigit , Kadir Y. Eryigit and Filiz Gaygusuz Abstract With the undeniable importance of the financial markets in the economy, the factors stimulating financial development have started to be researched, particularly in recent times in a more intensive way. Starting from this point, the driving force of this study is both to contribute to international literature in this field and to fill a gap in the literature related to Turkey. The main purpose of this study is to explain the causes of regional financial development differences on the basis of capital accumulation. In order to answer the question ‘What is the effect and degree of importance of physical, human and social capital on the differences in regional financial development?’, in this study some indexes for financial development and each type of capital accumulation will be calculated using kernel principle components analysis and depending on the annual data of 81 provinces covering the period 2005 – 2009. As an index, the capital measurements can be seen in a comprehensive form allowing for more accurate measurement and evaluation of both the capital accumulation and financial development. By using the calculated indexes, then, financial development differences are evaluated with spatial panel data methods developed by Elhorst (2003). In this context, to our knowledge, this study is the first to take into account the effects of each type of capital on financial development in a model simultaneously. Keywords: Financial development, physical capital, human capital, social capital, spatial panel data analysis, |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1539&r=fdg |
| By: | Les Dolega; Neil Wrigley |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1842&r=fdg |
| By: | Marte Bjørnsen; Steinar Johansen |
| Abstract: | Svalbard is the northernmost settlement in Europe, situated halfway between northern Norway and the North Pole. Settlement is restricted to Spitsbergen Island and there are two main settlements, the Norwegian town Longyearbyen and the Russian town Barentsburg. In addition, there are a few research stations about the island. Svalbard has been visited by hunters/whalers for centuries but settlement started with the mining industry around 1900. The size of the populations is in part politically determined and has historically varied with the mining activity. Total population is 2500 of which 80 per cent lives in the Norwegian settlement, which also is the administrative centre of Svalbard. In this paper, we analyse the relationships between basic economic activities, other economic activities and population in Longyearbyen. The analysis is based on a yearly panel of establishment data dating from early 1990s. We construct a multiplier model to analyse historical trends as well as future prospects. The economic growth which has taken place the last twenty years is strongly linked to the activity in the mining company but also to growth in other and emerging industries. In the 1990s, the Norwegian government stimulated other economic activities to develop alongside mining to establish a more soundly founded settlement. In particular, higher education, research activities, tourism, and public government have evolved as subsidiary industries. In 2010, sixty per cent of all labour years were performed in these subsidiary industries. Population has grown along with economic activity and more workers bring their families. This again, leads to growth in services of general interest. Today we may see a shift in this unbroken growth trend. The activity level in mining is falling and it remains to see how robust the subsidiary industries are to this changed situation. We have calculated that it takes a more than proportional increase in e.g. research or tourism activities to compensate for loss of employment in the mining industry. The last two years’ experience does, however, show an even more markedly negative development in the private sector subsidiary industries. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p638&r=fdg |